Image not recognised as sprite

I created my character in Krita and saved the file as a .psd
The file successfully imported in unity but when I put it in the animation window and play it the animation is not seen
I tried assigning it to my default cube sprite but I can’t seem to drag and drop my character image.
I saw the sprite settings and it is set as Sprite and UI

Any help would be appreciated

psd is a photosop save file, you need to export them as a img like jpg or png